§ 78aa. Jurisdiction of offenses and suits

Statutory text

In general

The district courts of the United States and the United States courts of any Territory or other place subject to the jurisdiction of the United States shall have exclusive jurisdiction of violations of this chapter or the rules and regulations thereunder, and of all suits in equity and actions at law brought to enforce any liability or duty created by this chapter or the rules and regulations thereunder. Any criminal proceeding may be brought in the district wherein any act or transaction constituting the violation occurred. Any suit or action to enforce any liability or duty created by this chapter or rules and regulations thereunder, or to enjoin any violation of such chapter or rules and regulations, may be brought in any such district or in the district wherein the defendant is found or is an inhabitant or transacts business, and process in such cases may be served in any other district of which the defendant is an inhabitant or wherever the defendant may be found. In any action or proceeding instituted by the Commission under this chapter in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence. Judgments and decrees so rendered shall be subject to review as provided in sections 1254, 1291, 1292, and 1294 of title 28. No costs shall be assessed for or against the Commission in any proceeding under this chapter brought by or against it in the Supreme Court or such other courts.

Extraterritorial jurisdiction

The district courts of the United States and the United States courts of any Territory shall have jurisdiction of an action or proceeding brought or instituted by the Commission or the United States alleging a violation of the antifraud provisions of this chapter involving—

conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors; or

conduct occurring outside the United States that has a foreseeable substantial effect within the United States.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1934
Pub. L. 73–404 · 48 Stat. 881
Enacted · 15 U.S.C. § 78aa
June 6, 1934, ch. 404, title I, § 27, 48 Stat. 902
Source evidence
Code source credit
June 6, 1934, ch. 404, title I, § 27, 48 Stat. 902
1987
Securities and Exchange Commission Authorization Act of 1987
Pub. L. 100–181 title III § 326 · 101 Stat. 1249
1. Struck · 15 U.S.C. § 78aa
  Pub. L. 100–181 struck out “, the United States District Court for the District of Columbia,” after “district courts of the United States”
2. Substituted · 15 U.S.C. § 78aa
  Pub. L. 100–181 substituted “sections 1254, 1291, 1292, and 1294 of title 28” for “sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 225 and 347)”. See Codification note above
Source evidence
Code amendment note
Pub. L. 100–181 struck out “, the United States District Court for the District of Columbia,” after “district courts of the United States” and substituted “sections 1254, 1291, 1292, and 1294 of title 28” for “sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 225 and 347)”. See Codification note above.
Enacted provision · exact public law section
Sec. 326. Section 27 of the Securities Exchange Act of 1934 (15 U.S.C. 78aa) is amended— (1) by striking out “, the United States District Court for the District of Columbia,”; and (2) by striking out “sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 225 and 347)” and inserting in lieu thereof “sections 1254, 1291, 1292, and 1294 of title 28, United States Code”.
2010
Investor Protection and Securities Reform Act of 2010
Pub. L. 111–203 § 929P(b)(2) · 124 Stat. 1376
1. Amended · 15 U.S.C. § 78aa
  Pub. L. 111–203, § 929P(b)(2), designated existing provisions as subsec. (a)
2. Inserted · 15 U.S.C. § 78aa
  Pub. L. 111–203, § 929P(b)(2), inserted heading
3. Added · 15 U.S.C. § 78aa
  Pub. L. 111–203, § 929P(b)(2), added subsec. (b)
Source evidence
Code amendment note
Pub. L. 111–203, § 929P(b)(2), designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).
Enacted provision · exact public law section
(2) Under the securities exchange act of 1934.— Section 27 of the Securities Exchange Act of 1934 (15 U.S.C. 78aa) is amended— (A) by striking “The district” and inserting the following: “(a) In General.— The district” ; and (B) by adding at the end the following new subsection: “(b) Extraterritorial Jurisdiction.— The district courts of the United States and the United States courts of any Territory shall have jurisdiction of an action or proceeding brought or instituted by the Commission or the United States alleging a violation of the antifraud provisions of this title involving— “(1) conduct within the United States that constitutes significant steps in furtherance of the violation, even if the securities transaction occurs outside the United States and involves only foreign investors; or “(2) conduct occurring outside the United States that has a foreseeable substantial effect within the United States.” .
Effective date note
Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.
2010
Investor Protection and Securities Reform Act of 2010
Pub. L. 111–203 § 929E(b) · 124 Stat. 1376
Inserted · 15 U.S.C. § 78aa
Pub. L. 111–203, § 929E(b), inserted “In any action or proceeding instituted by the Commission under this chapter in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence.” after “defendant may be found.”
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 111–203, § 929E(b), inserted “In any action or proceeding instituted by the Commission under this chapter in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence.” after “defendant may be found.”
Enacted provision · exact public law section
(b) Securities Exchange Act of 1934.— Section 27 of the Securities Exchange Act of 1934 (15 U.S.C. 78aa) is amended by inserting after the third sentence the following: “In any action or proceeding instituted by the Commission under this title in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence.”.
Effective date note
Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

6 of 7 references resolved to an enrolled provision · 1 partial

Editorial Notes

References in Text

This chapter, referred to in text, was in the original “this title”. See References in Text note set out under section 78a of this title.

The Federal Rules of Civil Procedure, referred to in subsec. (a), are set out in the Appendix to Title 28, Judiciary and Judicial Procedure.

Codification

As originally enacted section contained references to the Supreme Court of the District of Columbia. Act June 25, 1936, substituted “the district court of the United States for the District of Columbia” for “the Supreme Court of the District of Columbia”, and act June 25, 1948, as amended by act May 24, 1949, substituted “United States District Court for the District of Columbia” for “district court of the United States for the District of Columbia”. Pub. L. 100–181 struck out reference to the United States District Court for the District of Columbia. Previously, such words had been editorially eliminated as superfluous in view of section 132(a) of Title 28, Judiciary and Judicial Procedure, which provides that “There shall be in each judicial district a district court which shall be a court of record known as the United States District Court for the district”, and section 88 of Title 28 which provides that “the District of Columbia constitutes one judicial district”.

Amendments1987–2010 · 2 rounds

2010

Pub. L. 111–203, § 929P(b)(2), designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).

Pub. L. 111–203, § 929E(b), inserted “In any action or proceeding instituted by the Commission under this chapter in a United States district court for any judicial district, a subpoena issued to compel the attendance of a witness or the production of documents or tangible things (or both) at a hearing or trial may be served at any place within the United States. Rule 45(c)(3)(A)(ii) of the Federal Rules of Civil Procedure shall not apply to a subpoena issued under the preceding sentence.” after “defendant may be found.”

1987

Pub. L. 100–181 struck out “, the United States District Court for the District of Columbia,” after “district courts of the United States” and substituted “sections 1254, 1291, 1292, and 1294 of title 28” for “sections 128 and 240 of the Judicial Code, as amended (U.S.C., title 28, secs. 225 and 347)”. See Codification note above.

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by Pub. L. 111–203 effective 1 day after July 21, 2010, except as otherwise provided, see section 4 of Pub. L. 111–203, set out as an Effective Date note under section 5301 of Title 12, Banks and Banking.

Executive Documents

Transfer of Functions

For transfer of functions of Securities and Exchange Commission, with certain exceptions, to Chairman of such Commission, see Reorg. Plan No. 10 of 1950, §§ 1, 2, eff. May 24, 1950, 15 F.R. 3175, 64 Stat. 1265, set out under section 78d of this title.

Credits

1934–2010 · 6 acts

1934June 6, 1934, ch. 404, title I, § 27, 48 Stat. 902
1936June 25, 1936, ch. 804, 49 Stat. 1921
1948June 25, 1948, ch. 646, § 32(b), 62 Stat. 991
1949May 24, 1949, ch. 139, § 127, 63 Stat. 107
1987Pub. L. 100–181, title III, § 326, Dec. 4, 1987, 101 Stat. 1259
2010Pub. L. 111–203, title IX, §§ 929E(b), 929P(b)(2), July 21, 2010, 124 Stat. 1853, 1865.

Show as published

(June 6, 1934, ch. 404, title I, § 27, 48 Stat. 902; June 25, 1936, ch. 804, 49 Stat. 1921; June 25, 1948, ch. 646, § 32(b), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Pub. L. 100–181, title III, § 326, Dec. 4, 1987, 101 Stat. 1259; Pub. L. 111–203, title IX, §§ 929E(b), 929P(b)(2), July 21, 2010, 124 Stat. 1853, 1865.)